Musk under investigation for ‘conduct’ in attempted Twitter takeover


BREAKING NEWS: Elon Musk is under federal investigation for ‘his conduct’ in attempted Twitter takeover, court documents reveal – as the social media giant asks for access to documents he’s turned over to authorities

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Lawyers working for Twitter claimed in a court filing unsealed in Delaware on Thursday that the Tesla CEO Elon Musk is currently under investigation by federal authorities for his conduct as it pertains to his buyout of the popular social media company.

'Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter,' wrote attorneys for Potter Anderson Corroon LLP in a filing dated October 6. The social media company had requested access to documents that Musk has handed over to authorities.

‘Elon Musk is presently under investigation by federal authorities for his conduct in connection with the acquisition of Twitter,’ wrote attorneys for Potter Anderson Corroon LLP in a filing dated October 6. The social media company had requested access to documents that Musk has handed over to authorities. 

'Through counsel, he (Musk) has exchanged substantive correspondence with those authorities concerning their investigations,' wrote the attorneys. 'Twitter wants those documents, because they bear upon key issues in this litigation.' According to a Bloomberg report, Twitter is also attempting to gain access to communications between Musk and the Federal Trade Commission. Earlier in 2022, the US Securities and Exchange Commission sent an inquiry to Musk about the initial disclosure of his major stake in Twitter. The letter was sent in April and the SEC released it in May.

‘Through counsel, he (Musk) has exchanged substantive correspondence with those authorities concerning their investigations,’ wrote the attorneys. ‘Twitter wants those documents, because they bear upon key issues in this litigation.’ According to a Bloomberg report, Twitter is also attempting to gain access to communications between Musk and the Federal Trade Commission. Earlier in 2022, the US Securities and Exchange Commission sent an inquiry to Musk about the initial disclosure of his major stake in Twitter. The letter was sent in April and the SEC released it in May.

In early April, Musk disclosed he had acquired a more than 9% stake in Twitter. He did so one week later than regulations allow. He also used a filing generally reserved only for passive investors. Just days later he set off on a highly publicized, but noncommittal, effort to buy the company for $44 billion. Last week, Musk's deposition in the company's lawsuit aimed at forcing him to go through with the $44 billion buyout was delayed. Both sides are continuing in an attempt to iron out a deal that would halt a non-jury trial in Delaware on October 17. Pictured: witter CEO Parag Agrawal in July.

In early April, Musk disclosed he had acquired a more than 9% stake in Twitter. He did so one week later than regulations allow. He also used a filing generally reserved only for passive investors. Just days later he set off on a highly publicized, but noncommittal, effort to buy the company for $44 billion. Last week, Musk’s deposition in the company’s lawsuit aimed at forcing him to go through with the $44 billion buyout was delayed. Both sides are continuing in an attempt to iron out a deal that would halt a non-jury trial in Delaware on October 17. Pictured: witter CEO Parag Agrawal in July.

Among the many issues they are said to be discussing is whether the world's richest man will try to make the deal contingent on his original $12.5 billion debt-financing package, as banks try to weasel their way out of the agreement. The banks could argue that Musk's antics in delaying the agreement have sufficiently damaged Twitter, enough to qualify as a material adverse effect, letting them walk away, the New York Times reports.

Among the many issues they are said to be discussing is whether the world’s richest man will try to make the deal contingent on his original $12.5 billion debt-financing package, as banks try to weasel their way out of the agreement. The banks could argue that Musk’s antics in delaying the agreement have sufficiently damaged Twitter, enough to qualify as a material adverse effect, letting them walk away, the New York Times reports.

And Musk could even foil his own deal by refusing to sign a letter certifying Twitter is solvent, though the judge in the case is likely to force the billionaire to sue the banks for the agreed-upon money under the New York law that governs them. Twitter executives, on the other hand, are trying to make sure Musk won't back out of his agreement again, seeking a reaffirmation of the specifics in the previously-agreed-to contract. They are also considering options like court supervision of the closing process, and requesting that Musk pay interest to make up for the delays.

And Musk could even foil his own deal by refusing to sign a letter certifying Twitter is solvent, though the judge in the case is likely to force the billionaire to sue the banks for the agreed-upon money under the New York law that governs them. Twitter executives, on the other hand, are trying to make sure Musk won’t back out of his agreement again, seeking a reaffirmation of the specifics in the previously-agreed-to contract. They are also considering options like court supervision of the closing process, and requesting that Musk pay interest to make up for the delays. 

Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the number of fake accounts, among other claims. Part of Musk's case was based on allegations by Twitter whistleblower Peiter 'Mudge' Zatko that became public in August.

Musk said in July he was walking away from the takeover agreement because he discovered Twitter had allegedly misled him about the number of fake accounts, among other claims. Part of Musk’s case was based on allegations by Twitter whistleblower Peiter ‘Mudge’ Zatko that became public in August.

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